Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand3,700 units; cost $7.80 each. 8 Purchased 18,500 units for $7.20 each. 14 Sold 14,800 units for $13.70 each. 18 Purchased 11,100 units for $6.40 each. 25 Sold 13,800 units for $12.70 each. 28 Purchased 5,700 units for $5.80 each. 31 Inventory on hand10,400 units.
Required information Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system (LO8-1, 8-4) [The following information applies to the questions displayed below.) Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,700 units; cost $7.80 each. 8 Purchased 18,500 units for $7.20 each. 14 Sold 14,800 units for $13.70 each. 18 Purchased 11, 100 units for $6.40 each. 25 Sold 13,800 units for $12.70 each. 28 Purchased 5,700 units for $5.80 each. 31 Inventory on hand-18,480 units. Exercise 8-14 (Algo) Part 1 Required: 1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the FIFO method. Cost of Goods Sold - August 25 Inventory Balance Perpetual FIFO: Cost of Goods Available for Sale Cost of Goods Sold - August 14 Cost of Cost Goods # of Cost per # of units Cost of units per unit Available for unit Goods Sold Sale sold 3,700 $ 0.00 # of units sold Cost per unit Cost of Goods Sold Total Cost of Goods Sold # of units in inventory Cost per unit Ending Inventory $ 0.00 $ 0 S 0.00 $ 0 7.20 7.20 7.20 7.20 0 Beg. Inventory Purchases: August 8 August 18 August 28 Total 6.40 0 18,500 11,100 5,700 39,000 133,200 71,040 33,060 $ 237,300 6.40 5.80 6.40 5.80 6.40 5.80 5.80 0 0 $ 0 0 $ 0 $ 0 0 $ 0 Required information Exercise 8-14 (Algo) Inventory cost flow methods; perpetual system (LO8-1,8-4) [The following information applies to the questions displayed below.) Altira Corporation provides the following information related to its merchandise inventory during the month of August 2021: Aug.1 Inventory on hand-3,700 units; cost $7.80 each. 8 Purchased 18,500 units for $7.20 each. 14 Sold 14,800 units for $13.70 each. 18 Purchased 11,100 units for $6.40 each. 25 Sold 13,800 units for $12.70 each. 28 Purchased 5,700 units for $5.80 each. 31 Inventory on hand-10,480 units. Exercise 8-14 (Algo) Part 2 2. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2021, balance sheet and the cost of goods sold it would report in its August 2021 income statement using the Average cost method. (Round "Average Cost per Unit" to 2 decimal places.) Inventory Balance Perpetual Average Inventory on hand Cost of Goods Sold # of units Cost per Inventory # of units Avg. Cost Cost of unit Value sold per unit Goods Sold # of units in Cost per inventory unit Ending inventory Beginning Inventory Purchase - August 8 0 $ 0 Sale - August 14 Purchase - August 18 0 $ 0 Sale - August 25 Purchase - August 28 Total 0 S 0 $ 0 0 $ 0
